BILL NUMBER: AB 776 CHAPTERED 10/09/03 CHAPTER 726 FILED WITH SECRETARY OF STATE OCTOBER 9, 2003 APPROVED BY GOVERNOR OCTOBER 8, 2003 PASSED THE ASSEMBLY SEPTEMBER 8, 2003 PASSED THE SENATE SEPTEMBER 4, 2003 AMENDED IN SENATE AUGUST 27, 2003 AMENDED IN SENATE JUNE 26, 2003 AMENDED IN ASSEMBLY MAY 1, 2003 AMENDED IN ASSEMBLY MARCH 24, 2003 INTRODUCED BY Assembly Member Matthews FEBRUARY 19, 2003 An act to amend Sections 24001, 24011, 46013.1, and 62582 of, and to add Section 32501.5 to the Food and Agricultural Code, and to amend Section 110815 of the Health and Safety Code, relating to agriculture. LEGISLATIVE COUNSEL'S DIGEST AB 776, Matthews. Agriculture. Existing law provides that the public has a valuable interest in public horse shows, horse competitions, and horse sales, and declares that it is the intent of specified provisions regulating these activities to ensure their integrity through the control of performance and disposition enhancing medications, while limiting permitted therapeutic usage. Existing law defines terms with respect to these provisions. Existing law provides that a horse exhibited at an event that receives a NSAID, as specified, shall not be eligible for show, competition, or sale. This bill would make a technical, nonsubstantive change. This bill would provide that a horse that receives a NSAID, as specified, within a specified period prior to an established withdrawal time shall not be eligible for show, competition, or sale. Existing law, the Milk and Milk Products Act of 1947, generally regulates the production and handling of market milk. This law is administered by the Department of Food and Agriculture. This bill would create within the Department of Food and Agriculture the Milk and Dairy Food Safety Branch. This bill would also provide that the division within the Department of Food and Agriculture formerly known as the Milk and Dairy Foods Control Branch shall be renamed the Milk and Dairy Food Safety Branch. Existing law establishes the Milk Producers Security Trust Fund to protect milk producers against loss of payment for bulk milk transferred to handlers. Existing law provides that future milk shipments will not be eligible for coverage under the trust fund under certain conditions. This bill would authorize the Secretary of Food and Agriculture to determine that future milk shipments are not eligible for coverage if the handler fails to submit, when requested by the secretary, executed contracts that establish the relationship between the affected parties. Existing law defines terms used with respect to regulation of organic products. Existing law, the California Organic Products Act of 2003, provides that producers, handlers, and processors of organic products shall pay a registration fee to the Secretary of the Department of Food and Agriculture which shall be based on gross sales of product sold as organic in the calendar year that precedes the date of registration, as specified. This bill would make a technical, nonsubstantive change. This bill would also make a clarifying change in the provisions regarding the registration fees applicable to individual classifications of feepayers. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 24001 of the Food and Agricultural Code is amended to read: 24001. For the purposes of this chapter: (a) "Event" means any public horse show, competition (including cutting horse competitions, endurance riding competitions, competitive trail competitions, gymkhanas, and any other competition as determined by the secretary by regulation), or sale, in which money, goods, or services are exchanged for the right to compete for a single set of placings leading to points or awards at the show or competition, or to permit a horse to be consigned for sale. "Event" does not include any of the following: (1) Those competitions subject to the jurisdiction of the California Horse Racing Board. (2) Sales consisting solely of racing stock. (3) A rodeo related competition including both rough stock and timed performance competitions when held apart from a horse show. (4) Roping club events when held apart from a horse show. (5) Cattle team pennings when held apart from a horse show. (6) Barrel racing when held apart from a horse show. (7) Parade horse competitions. (8) Public horse shows and public horse competitions that do not last longer than one day and whose total cumulative fees to enter into any one or all classes do not exceed four dollars and ninety-nine cents ($4.99), unless otherwise prescribed by the secretary by regulation. "Grounds fees," "stall fees," or any other fee composed of money, goods, or services, which is assessed to permit competitors or consignors to enter into an event are considered a part of this total cumulative fee. (b) "Event manager" means the person in charge of an event, including the person responsible for registering the event with the department, and the person responsible for the assessment, collection, and remittance of fees. "Event manager" includes horse show secretaries and managers, competitive event managers, and horse sale managers and sale owners. (c) "Horse" means and includes all horses, mules, and asses. (d) "Licensed veterinarian" means any person licensed as a veterinarian by the State of California. (e) "Prohibited substance" is any stimulant, depressant, tranquilizer, anesthetic, including any local anesthetic, sedative analgesic, corticosteroid, anabolic steroid, or agent that would sore a horse, which could affect the performance, soundness, or disposition of a horse, or any drug regardless of how harmless or innocuous it might otherwise be that could interfere with the detection of any prohibited substance. It also includes any metabolite or derivative of any prohibited substance. (f) "NSAIDs" are nonsteroidal anti-inflammatory drugs. (g) "Therapeutic administration" means the administration of a drug or medicine that is necessary for the treatment of an illness or injury diagnosed by a licensed veterinarian. The administration of a prescription drug or medicine shall only be as given or prescribed by the licensed veterinarian. The administration of a nonprescription drug or medicine shall be in accordance with the directions on the manufacturer's label. (h) "Exempt medications" are oral or topical medications containing prohibited substances determined by the secretary to be exempt from this chapter when administered therapeutically. (i) "Public" horse shows, competitions, or sales are those events that permit a person to enter or consign a horse for sale in exchange for money, goods, or services. Any club or group that permits people to join, enter into competition, or consign a horse for sale in exchange for money, goods, or services, is "public" for the purposes of this chapter. (j) "Stimulant or depressant" means any medication that stimulates or depresses the circulatory, respiratory, or central or peripheral nervous system. (k) To "sore" means to apply an irritating or blistering agent internally or externally for the purpose of affecting the performance, soundness, or disposition of a horse. (l) "Trainer" means any person who has the responsibility for the care, training, custody, or performance of a horse, including, but not limited to, any person who signs any entry blank of any public horse show, competition, or sale, whether that person is an owner, rider, agent, coach, adult, or minor. SEC. 2. Section 24011 of the Food and Agricultural Code is amended to read: 24011. A horse exhibited at an event that receives a prohibited substance or any NSAID for which a maximum detectable plasma level has been established in Section 24011.5, within 48 hours prior to any withdrawal time established by or pursuant to this chapter, shall not be eligible for show, competition, or sale, unless the following requirements have been met and the facts requested are submitted to the secretary in writing: (a) Medication shall be therapeutic and necessary for treatment of an illness or injury. (b) A horse shall be withdrawn from a show or competition for a period of not less than 24 hours after a prohibited substance is administered, unless the secretary determines a different withdrawal period for a specific prohibited substance or class of substances. A horse shall be withdrawn from a public sale for a period of not less than 72 hours after a prohibited substance or NSAID is administered. The withdrawal period for anabolic steroids is 90 days after administration. (c) The medication shall be administered by a licensed veterinarian, the trainer, or owner. (d) Medication shall be identified as to the amount, strength, and mode of administration. (e) The statement shall include the date and time of administration of the medication. (f) The horse shall be identified by its name, age, sex, color, and entry number. (g) The statement shall contain the diagnosis of the attending veterinarian and reason for administering the medication. (h) The statement shall be signed by the person administering the medication. (i) The statement shall be filed with the event manager of the public horse show or competition or general manager of the horse sale within one hour after administration or one hour after the event manager of the event returns to duty, if administration is at a time other than during show or sale hours. (j) The statement shall be signed by the event manager or his or her designated representative and time of receipt recorded on the statement by the event manager or his or her designated representative. If the chemical analysis of the sample taken from a horse so treated indicates the presence of a prohibited substance and all the requirements of this section have been fully complied with, the information contained in the medication report and any other relevant evidence shall be considered at any hearing provided under this chapter in determining whether any provision of this chapter has been violated. SEC. 3. Section 32501.5 is added to the Food and Agricultural Code, to read: 32501.5. There is within the Department of Food and Agriculture the Milk and Dairy Food Safety Branch. SEC. 4. Section 46013.1 of the Food and Agricultural Code is amended to read: 46013.1. (a) Every person engaged in this state in the production or handling of raw agricultural products sold as organic, and retailers that are engaged in the production of products sold as organic, and retailers that are engaged in the processing, as defined by the NOP, of products sold as organic, shall register with the agricultural commissioner in the county of principal operation prior to the first sale of the product. All processors of organic agriculturally derived products that are not required to be registered as outlined in subdivision (b) must register with the secretary. Each registrant must annually renew the registration unless no longer engaged in the activities requiring the registration. Each registrant shall provide a complete copy of its registration to the county agricultural commissioner in any county in which the registrant operates. (b) Every person engaged in this state in the processing or handling of processed products pursuant to Section 110460 of the Health and Safety Code, and pet food pursuant to Section 18653, and cosmetics pursuant to Section 111795 of the Health and Safety Code, including processors of alcoholic beverages, fish and seafood, shall register with the State Director of Health Services. (c) Registration pursuant to this section shall be on a form either provided by the secretary or approved by the secretary and shall be valid for a period of one calendar year from the date of validation by the secretary or county agricultural commissioner of the completed registration form. (d) The information provided on the registration form shall include all of the following: (1) The nature of the registrant's business, including the categorical products produced, handled, or processed that are sold as organic and the names and registration numbers of those persons for whom they sell product as applicable. (2) (A) For producers, a map showing the precise location and dimensions of the facility or farm where the products are produced. The map shall also describe the boundaries of the production area and all adjacent land uses, shall assign field numbers to distinct fields or management units, and shall describe the size of each field or management unit. (B) When the registrant has not had control of the property being registered for at least 36 months, documentation shall be provided from previous owners or managers that shows the 36-month land use history. When the registrant is not the owner, documentation shall be provided from the owner granting permission for the parcel to be registered as organic by the registrant. (3) Sufficient information, under penalty of perjury, to enable the secretary or county agricultural commissioner to verify the amount of the registration fee to be paid in accordance with this act. (4) The names of all certification organizations or governmental entities, if any, providing organic certification to them. (5) In the case of producers, for each field or management unit, a list of all substances applied to the crop, soil, growing medium, growing area, irrigation water or postharvest wash or rinse water, or seed, including the source of the substance, the brand name, if any, the rate of application, and the total amount applied in each calendar year, for at least the applicable time periods specified in this act. (e) The registration form shall include a separate "public information sheet" or its equivalent that shall include: (1) The name and address of the registrant. (2) The nature of the registrant's business, including the categorical products produced, handled, or processed that are sold as organic. (3) The names of all certification organizations or governmental entities, if any, providing certification pursuant to the NOP and this act. (f) A registration form shall be accompanied by payment of a nonrefundable registration fee by producers, handlers, and processors, which shall be based on gross sales by the registrant of product sold as organic in the calendar year that precedes the date of registration or, if no sales were made in the preceding year, then based on the expected sales during the 12-calendar months following the date of registration. Unless specified elsewhere the fee is based according to the following schedule: Gross Sales Registration Fee $ 0 - 4,999 $ 25 $ 5,000 - 10,000 $ 50 $ 10,001 - 25,000 $ 75 $ 25,001 - 50,000 $ 100 $ 50,001 - 100,000 $ 175 $ 100,001 - 250,000 $ 300 $ 250,001 - 500,000 $ 450 $ 500,001 - 1,000,000 $ 750 $ 1,000,001 - 2,500,000 $ 1,000 $ 2,500,001 - 5,000,000 $ 1,500 $ 5,000,001 - 15,000,000 $ 2,000 $ 15,000,001 - 25,000,000 $ 2,500 $ 25,000,001 - and above $ 3,000 (1) Any person required to register pursuant to this section whose registration fee would be less than seventy-five dollars ($75) shall pay an initial registration fee of seventy-five dollars ($75). Thereafter, the amount of the annual fee shall be as specified above or, according to the applicable classification, as described in paragraphs (2) to (9), inclusive. (2) Any person selling a multi-ingredient product in which less than 70 percent of the ingredients are organic shall pay a fee of one hundred dollars ($100) or one-half of the amount that would be due based on the above chart, whichever is more. (3) Producers that sell processed product shall pay fees based on the value of raw product prior to being processed and the value of any product sold as unprocessed. (4) Any person that packs, repacks, labels, sorts, or otherwise handles any organic product that is outside the jurisdiction of the State Director of Health Services and that does not take title or manage the sale of the product, but provides only handling services for organic product, shall register and pay one hundred dollars ($100) per year. (5) Commission merchants or brokers that do not take possession or title of the product but arrange for the sale of the product shall register and pay one hundred dollars ($100) per year. (6) A retail store engaged in the handling or processing of organic products shall register and pay a fee of one hundred dollars ($100) for each store location that processes organic products onsite. (7) Any person that provides temporary storage or transportation for organic product and does not handle the raw unpackaged product does not have to register. (8) Any person that hires any other person for custom packing or labeling shall register and pay a fee based on the total sales of product custom produced for them as outlined in the chart above. In addition to the required registration information above the person must disclose on the registration form the names of all companies that pack and process for them. (9) Any person required to register pursuant to this section that fits the description of more than one of the persons described above shall pay the greater of the multiple amounts. SEC. 5. Section 62582 of the Food and Agricultural Code is amended to read: 62582. If the secretary determines that future shipments to a handler may not be eligible for coverage under this chapter in the event of a default, the secretary shall notify all producers who have a contract on file with the secretary, all cooperative associations, and other interested parties. The secretary may determine that future shipments will not be eligible when any of the following events occur: (a) The handler fails to maintain a valid license or bond as required under Chapter 1 (commencing with Section 61301) or Chapter 2 (commencing with Section 61801). (b) The handler has failed to pay producers as required under Chapter 1 (commencing with Section 61301) or Chapter 2 (commencing with Section 61801). (c) The handler has failed to pay the amount due the pool equalization fund provided for in Chapter 3 (commencing with Section 62700). (d) The handler fails to submit, when requested by the secretary, executed contracts that establish the relationship between affected parties. SEC. 6. Section 110815 of the Health and Safety Code is amended to read: 110815. Unless otherwise defined pursuant to the National Organic Program, the following words and phrases, when used in this article, shall have the following meanings: (a) "Animal food" means any food intended to be fed to any household animal, including, but not limited to, cats, or dogs and other carnivores. It does not include "feed" intended for livestock as defined in Section 205.2 of Title 7 of the Code of Federal Regulations. (b) "Director" means the Director of the Department of Health Services. (c) "Enforcement authority" means the governmental unit with primary enforcement jurisdiction, as provided in Section 110930. (d) "Handle" means to sell, process, or package agricultural products. (e) "Handler" means any person engaged in the business of handling agricultural products, but does not include final retailers of agricultural products that do not process agricultural products. (f) "Handling operation" means any operation or portion of an operation, except final retailers of agricultural products that do not process agricultural products, that (1) receives or otherwise acquires agricultural products and (2) processes, packages, or stores agricultural products. (g) "NOP" means the National Organic Program established pursuant to the Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.) and the regulations adopted for implementation. (h) "Processing" means cooking, baking, heating, drying, mixing, grinding, churning, separating, extracting, cutting, fermenting, eviscerating, preserving, dehydrating, freezing, or otherwise manufacturing, and includes packaging, canning, jarring, or otherwise enclosing food in a container. (i) "Prohibited materials" means any materials prohibited under regulations adopted by (Section 6517 of the federal Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.)). For products not covered by the National Organic Program, prohibited materials are anything not on the approved list. (j) "Secretary" means the Secretary of the California Department of Food and Agriculture. (k) "Sold as organic" means any use of the terms "organic," "organically grown," or grammatical variations of those terms, whether orally or in writing, in connection with any product grown, handled, processed, sold, or offered for sale in this state, including, but not limited to, any use of these terms in labeling or advertising of any product and any ingredient in a multi-ingredient product. (l) "USDA" means the United States Department of Agriculture. SEC. 7. The division within the Department of Food and Agriculture formerly known as the Milk and Dairy Foods Control Branch shall be renamed the Milk and Dairy Food Safety Branch and is the branch referred to in Section 32501.5 of the Food and Agricultural Code.